The Federal Government has said that the Bank of Agriculture (BOA) and Bank of Industry (BOI) are to manage disbursement of the N9.9b cassava bread fund released by President Goodluck Jonathan.
The Minister of Agriculture and Rural Development, Dr. Akinwumi Adesina, disclosed this at the signing of a Memorandum of Understanding (MoU) with the BOA yesterday in Abuja.
The BOA is to manage N2.4billion of the fund in collaboration with 13 key private stakeholders, while N4.3billion will be disbursed by the BOI to support Small and Medium Scale Enterprises (SMEs) that are actively involved in cassava processing.
Adesina said that out of the N2.4billion, about N912m will be spent on farm mechanisation support for cassava farmers, while N780 million will be used to support the farmers on planting materials, with N796million to be used in providing agro-inputs such as seeds, fertiliser, among others.
The minister emphasised that each division of the N2.4billion will be disbursed like the Growth Enhancement Support Scheme (GES) such that 50percent of the fund will be given to farmers as loan, while the remaining 50percent would serve as grant from the federal government.
According to him, the Managing Director of BOA, Dr. Mohammed Santuraki, was leveraging money for the states through the bank’s agreements with state governors.
Adesina said, “It will be 50percent grant and 50percent loan. And you will agree with me that this is a huge step forward in terms of supporting our farmers to produce more cassava. Let me also say that we are delighted with the Bank of Agriculture. Every time I see the MD, he is always signing new agreements with states executives.”
Earlier, the Permanent Secretary in the Ministry, Mrs. Ibukun Odusote, said the agreement would consolidate existing relationship between the Federal Ministry of Agriculture and the BOA.
She noted that the inclusion of cassava flour into bread making was aimed at partially substituting huge wheat import with High Quality Cassava Flour (HQCF). Click to signup for FREE news updates, latest information and hottest gists everyday
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